Verrica Pharmaceuticals Inc.

Good morning, ladies and gentlemen, and welcome to the Verica Pharmaceuticals' fourth quarter and year-end 2025 Corporate Update Conference Call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question-and-answer session. As a reminder, this conference is being recorded. I will now turn the call over to our host, Kevin Gardner, of LifeSci Advisors. You may begin your conference.

Thank you, operator. Hello, everyone, and welcome to Verica Pharmaceutical's fourth quarter and year-end 2025 corporate update conference call. With me on the line this morning are Jason Rieger, President and Chief Executive Officer, Noah Rosenberg, Chief Medical Officer, John Kirby, Interim Chief Financial Officer, David Zawitz, Chief Operating Officer, and Chris Chapman, Chief Commercial Officer. As a reminder, during today's call, management will make forward-looking statements. These forward-looking statements are based on the company's current expectations and involve inherent risks and uncertainties. Verica's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements. Please see Verica's SEC filings for important risk factors. Baraka cautions you not to place undue reliance on forward-looking statements and undertakes no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in expectations. In addition, during today's call, management will discuss certain non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures compared to their closest GAAP equivalents. The earnings release that the company issued today includes GAAP to non-GAAP reconciliations for these measures and is also available on the investor relations section of Verica's website. I'll now turn the call over to Verica's president and CEO, Jason Rieger.

Thank you, Kevin. Good morning, everyone, and thank you for joining us on our fourth quarter and year-end 2025 corporate update call. Based on achieving multiple commercial, clinical, and financial initiatives, we believe 2025 will be remembered as the year Verica was able to fundamentally transform its business. setting a solid foundation for the future and supporting the delivery of long-term value creation for its shareholders. We started 2025 by stabilizing our commercial organization, ultimately more than doubling revenue from the core Wycant business for Moleskine, while dramatically cutting costs from the previous year. We also realized very meaningful advances in our efforts to expand our product portfolio with progress towards a second product, BP315, into a new indication for Y-CAMP, common warts, and into new markets, including Europe. Now, we are a completely different company than we were as we entered 2025, and I couldn't be more excited about the future that lies ahead. First and foremost, in 2025, we implemented a more optimized commercial strategy with the goal of establishing Y-CAMP as a new standard of care for the treatment of molluscum contagiosum. As a result, we were able to grow YCAMP's revenue by more than 130% compared to 2024, while at the same time reducing our selling general administrative expenses by over 40% from the same period. These results reflect the hard work and dedication of our team, disciplined cost management, and the progress we continue to make in building solid relationships with physicians, payers, and our distribution partners. We also made important progress in our pipeline, advancing both our common warts and basal cell carcinoma programs. We launched the global phase three program study for Y-CANTH for common warts with our Japanese development partner, Torrey Pharmaceutical, after negotiating an amended collaboration and license agreement with them. Under this arrangement, we received 18 million of milestone payments in the third quarter of 2025. and Tori will remit the first $40 million of program costs representing approximately 90% of the current budget. We will offset future milestones and royalty payments owed to us towards our share of the 50-50 split. We dosed the first patient in common warts program in December and look forward to initiating the second phase three study in the U.S. and Japan with Tori over the coming months. We believe our oncolytic peptide asset, VP315, represents one of the most promising opportunities in dermatology, and we substantially reduced the cost and time of a Phase III program in basal cell carcinoma by aligning with the FDA on a streamlined design study last year. We believe each of these advanced programs could represent significant value drivers for our company, and we are tremendously excited about these future potential products. Importantly, we have strengthened our financial position. In addition to the $18 million in non-dilutive funding from Tori, we executed a $50 million equity raise in November and the subsequent retirement of our outstanding debt. We also should note Tori's launch of YCAMP in Japan in February after receiving approval last year from PMDA. Barrett continues to work closely with Tori, now part of Shinogi, to support this commercial effort as we view Japan as the first of many additional countries where doctors will be able to treat their Moleskine patients with Y-CAMP. Together, these achievements demonstrate the potential value of our assets, one growing commercial program with the opportunity for future global market expansion, and two phase three development programs in large indications. These assets not only position us for a successful 2026, but also serve as the foundation for Verica's long-term strategy. I'll first provide an update on our Y-CAMP commercial business and then review the progress of our clinical stage programs in common warts and basal cell carcinoma. I'll then turn the call over to John, who will review our fourth quarter and full year 2025 financial performance. First, with respect to commercial update on Y-CAMP for molluscum. As a reminder, we have made purposeful investments in our co-pay assistance program to provide comfort to healthcare providers that their patients will be able to afford treatment with Y-CAMP. And this broad access to Y-CAMP has impacted gross to net estimates over the past year. In the fourth quarter of 2025, we grew Wycanth revenue to $3.7 million, up 3.2% from the third quarter, while we continue to maintain demand-driven purchases from our customers. Over the entire year, net Wycanth revenue grew over 130% relative to 2024. I am pleased to report that for the fourth consecutive quarter, Wycanth inventories remain at normalized levels with YCAMS applicator units shipped to distributors, continuing to closely track underlying dispensed applicator unit demand. In Q4, YCAMS dispensed applicator units grew to 13,654, a 58% increase from the fourth quarter of 2024. When comparing the fourth quarter to the third quarter of 2025, YCAMS dispensed applicator units decreased approximately 3%. In the first quarter of 2026, while January was likely impacted somewhat by significant winter weather across the East Coast, dispensed applicator units per selling day in February rebounded, reaching a record monthly high since launch. Overall, I've been very pleased by the significant traction driven by our commercial team so far in Q1. For the full year 2025, why can't dispensed applicator units total 51,196? versus 25,773 units for 2024, representing growth of 99% on a year-over-year basis. Our strong annual growth reflects the full impact of our new commercial strategy. In addition to expanding YCAMP's distribution through the pharmacy channel, we've continued to build strong relationships with dermatology, pediatric, and primary care offices, enabling us to steadily build YCAMP brand awareness and drive repeat utilization in high-volume practices. At the same time, we continue to build some solid relationships with many larger practices and hospital systems. We believe this strategy will help drive long-term utilization for Y-CAMP as these foundational HCP relationships will already be established if we are successful in expanding the label for Y-CAMP to common wards. In the fourth quarter, we continue to prioritize affordable access to Y-CAMP for patients. As such, we continue to pursue additional and expanded coverage and have achieved coverage wins in 2025 and 2026. Furthermore, as we previously announced, during the fourth quarter, we launched Y-CANTH-RX, our new non-dispensing pharmacy that gives prescribers a single place to write all Y-CANTH prescriptions. In addition to existing paths to access Y-CANTH, with Y-CANTH-RX now in place, YCAMP's prescriptions can be efficiently routed through dispensing pharmacy in our network that is contracted with the patient's insurance plan. Collectively, as these efforts come together, we hope to observe a positive impact on gross to net throughout 2026. Operationally, we made new additions to our commercial leadership and field teams in the fourth quarter and continued those efforts earlier this year, adding Chris Chapman to our team as our new chief commercial officer. The gradual expansion of our Salesforce, which began in the second half of last year, has also continued, and we still expect to reach a total of approximately 50 reps in 2026. During 2025, we made significant progress in our efforts to bring YCAMP to the European Union. In October, we announced that the Committee for Medicinal Products for Human Use, CHMP, of the European Medicines Agency, provided positive feedback that supports the filing of a marketing authorization application for Y-CAMP as a treatment for Maleska. More specifically, the CHMP concluded that, based on convincing efficacy data from the well-controlled Phase III studies successfully conducted in both the US and Japan, no further Phase III clinical studies would be needed to progress toward the filing for approval. Europe represents a large potential opportunity for YCAMP, with millions of Moleskine patients, and the feedback from CHMP provides us with added confidence to consider multiple strategic opportunities for realizing the full commercial potential of YCAMP in this large and underserved market. Our development teams continue to work through the required steps for submission in EU, which may occur within the next 12 months, and catalyze opportunities to secure commercialization partnerships in that region. I'll now provide an update on our common warts and basal cell clinical programs. For common warts, we previously announced that dosing of the first patient during December of 2025 in the global phase 3 trial evaluating Y-CANs for common warts, which represents an important clinical milestone for our label expansion strategy of Y-CANs. As a reminder, we observe clinically meaningful activity for the primary endpoint of complete clearance in the Phase 2 COVE-1 study. If successful in Phase 3 studies, we believe Y-CAMP has the potential to become the first therapy ever approved in both the United States and Japan for the treatment of common warts, a condition that impacts over 22 million people in the U.S. alone. As you will recall, we are running this Phase 3 program with our Japanese partner, Tori, now part of Shinogi, with whom we will split the cost 50-50 with Tory funding the first $40 million of clinical trial costs, representing approximately 90% of the current trial budget, and we will repay the portion out of our future milestones and royalties for Y-CANTH in Japan. Importantly, Baraka retains full commercial rights for all potential Y-CANTH indications outside of Japan. We believe securing an indication for common warts represents a substantial enhancement to the commercial and licensing opportunity for our company, and we expect to provide a more granular update on key timelines and milestones for the common work program later this year. I will now provide an update on our basal cell carcinoma program. We continue to make progress advancing our novel oncolytic peptide, BP315, which is being developed for the treatment of basal cell carcinoma. As a reminder, last November, we presented new VP315 data from our Phase II study at the Society for Immunotherapy of Cancer, 40th annual TITC presentation, which showed that VP315 induced a robust local immune response with both cell-mediated and humoral components, effectively shifting the tumor microenvironment from an immunosuppressive to an antitumor state. and additional data regarding the histologic assessment in non-injected lesions that suggests a potential abscopal-like effect. These data help explain why BP315 shrinks treated basal cell carcinomas in many patients as evidenced by a 97% objective response rate and an 86% reduction in overall tumor size. Since that presentation, there has been a growing interest in this program across a broad audience. We believe this reflects the high response rates observed in the study and the potential for VP315 to change the paradigm for basal cell, particularly for patients wishing to avoid or reduce their surgical burden and recovery. Our enthusiasm is further supported by the suggested potential for less scarring and improved compliance versus other therapeutic options such as surgery and topicals. as either a primary or neoadjuvant treatment for superficial and nodular tumors. We've also continued to evaluate the abscopal response in 14 observed but not treated lesions in the Phase II study and are excited to report that three out of the 14 lesions had complete histological clearance, 21% of the total number of lesions, and that there was a 67% overall reduction in tumor size across all 14 lesions. If this overall product profile could be demonstrated in pivotal Phase III testing, we believe BP315 has the potential to emerge as a non-surgical immunotherapy for treatment of basal cell carcinoma and other skin cancers. As noted on our third quarter earnings call, Verica has gained alignment with the FDA on an efficient Phase III study design for BP315. This includes two Phase III studies of approximately 100 subjects each in placebo-controlled studies for the primary endpoint of complete clearance at Week 14. Additional long-term follow-up studies will be deferred to post-approval commitments. We are actively assessing a variety of funding opportunities for this program and have initiated clinical and CMC activities to proactively prepare for the commencement of Phase III clinical trials. We expect to provide a more detailed plan on the program later this year. Before turning the call over to John to review our financials, I would first like to briefly touch on the impact of our recent equity raise in the fourth quarter. On November 24th, we announced a $50 million pipe, which enabled us to retire our outstanding debt while also extending our cash runway into 2027. I would like to thank our existing and new shareholders for their support, which has enabled us to continue execution of our YCAMP commercialization strategy, support the global phase three program for common warrants, and continue preparation activities for the Phase III clinical program for VP315, while we also explore non-dilutive development and commercialization opportunities for VP315 globally, as well as for YCAMP outside the United States and Japan. I'll now turn the call over to our Interim Chief Financial Officer, John Kirby, to review our fourth quarter and full year 2025 financials.

Thanks, Jason, and good morning, everyone. I'll now take a few minutes to summarize our financial results for the fourth quarter and year-ended December 31, 2025. For the fourth quarter of 2025, we reported total revenue of $5.1 million, compared to total revenue of $0.3 million in the fourth quarter of 2024. Total revenue for the fourth quarter of 2025 primarily consists of net YCAMP revenue of $3.7 million and $1.4 million of Tory collaboration revenue, compared to $0.3 million of net YCAMP revenue in the fourth quarter of 2024. Net YCAMP revenue reflects shipments to our distribution partners offset by standard gross-to-net adjustments, including actual or anticipated product returns, off-invoice discounts, distribution fees, rebates, and co-pay assistance program costs. For the full year 2025, we reported total revenue of $35.6 million versus $7.6 million in the prior year, representing growth of 368% on a year-over-year basis. Total revenue for 2025 consists primarily of net YCAMP revenue of $15.3 million and $20.3 million of Tory milestone and collaboration revenue versus net YCAMP revenue of $6.6 million and $1 million of Tory milestone and collaboration revenue in the prior year. Gross product margins for the full year 2025 were 85.7% compared to gross product margins of 71.8% for the prior year. Cost of product revenue for the full year 2025 was $2.2 million versus $1.9 million for the prior year, which included $0.9 million of obsolete inventory costs. Gross product margins for the fourth quarter of 2025 were 81.9%. In the fourth quarter of 2024, cost of product revenue exceeded revenue due to nominal sales and the write-off of obsolete inventory. Cost of product revenue for the fourth quarter of 2025 was $0.7 million versus $0.6 million for the fourth quarter of 2024. Research and development expenses of $2.5 million in the fourth quarter of 2025 increased by $1.5 million, excluding the impact of stock-based compensation. The increase was primarily attributable to costs associated with the Phase III program for common warts and compensation. For the full year 2025, research and development expenses were $8.9 million, which decreased by $2.1 million over the prior year period when excluding the impact of stock-based compensation. The decrease was primarily attributable to decreased clinical costs for VP315. Selling general and administrative expenses of $8.1 million in the fourth quarter of 2025 decreased compared to the fourth quarter of 2024 by $1.8 million, excluding the impact of stock-based compensation, driven primarily by the implementation of our more focused commercial strategy for WICANN. For the full year 2025, selling general and administrative expenses of $35.2 million decreased compared to the prior year by $20.6 million, excluding the impact of stock-based compensation, driven primarily by the implementation of our more focused commercial strategy for YCAMP, including decreases in compensation benefits and travel due to the reduced sales force of $6.9 million, decreased commercial costs of $6.6 million, decreased compensation of $2.7 million related to the termination of non-sales employees, decreased travel and fleet costs of $2 million, and decreased legal and administrative costs of $2.3 million. During the fourth quarter, we made a payment of $35 million to fully settle all outstanding obligations under our credit agreement with OrbiMed, which represented a savings of approximately $7 million from the amount owed on the date of settlement in November 2025. As a result of the settlement of this debt, in accordance with GAAP, we recognize the loss on extinguishment of debt of $1.5 million, as well as a gain of $1.8 million related to the remeasurement of our derivative liability, which no longer exists. Before discussing net loss per share, I will note that on July 24th, 2025, we affected a reverse stock split at a ratio of one for 10 shares of our common stock. As a result, every 10 shares of our issued and outstanding common stock were automatically combined into one share. The 2025 and 2024 per share amounts, I will note, reflect the impact of the reverse stock split. Gap net loss was $8.1 million, or $0.57 per share, for the fourth quarter of 2025, compared to gap net loss of $16.2 million, or $2.41 per share, for the fourth quarter of 2024. On a non-GAAP basis, which excludes stock-based compensation, non-cash interest expense, change in fair value of embedded derivatives, and loss on extinguishment of debt, the fourth quarter of 2025 net loss was $7.2 million, or $0.51 per share compared to a net loss of $12.2 million or $1.81 per share for the fourth quarter of 2024. Gap net loss was $17.9 million or $1.68 per share for the full year 2025 compared to a gap net loss of $76.6 million or $14.78 per share for the full year 2024. On a non-GAAP basis, which excludes stock-based compensation, non-cash interest expense, change in fair value of embedded derivatives, and loss on extinguishment of debt, the full year 2025 net loss was $13.2 million, or $1.24 per share, compared to a net loss of $64.6 million, or $12.47 per share for the full year 2025. And finally, as of December 31, 2025, Verica had aggregate cash and cash equivalents of $30.1 million, which is expected to fund operations into 2027. As Jason mentioned earlier, we received a total of $18 million in cash milestone payments from Torrey during 2025 and completed a $50 million private placement in November of 2025. I'll now turn the call back over to Jason for closing remarks.

Thanks, John. Over the last 12 months, Verica's new leadership team has implemented a series of swift and necessary changes to ensure our pathway to sustainable growth. Our team has responded extremely well to these changes, and through their steadfast execution, the results have laid the foundation for a bright future. We are working on establishing Y-CAMP as the new standard of care for molluscum. executing on our label expansion opportunity with the dosing of the first patient in the Phase III Common War Program, and are preparing for a Phase III-ready program in basal cell carcinoma. We've also extended our cash runway into 2027 and eliminated all outstanding debt. We are growing our core business and advancing our pipeline with a streamlined, more efficient operating structure, and we are ready to create a new future for Verica and our patients. With that, we will be happy to take any questions. Operator?

Thank you. And if you would like to ask a question, please press star 1 on your keypad. To leave the queue at any time, press star 2. Once again, that is star and 1 to ask a question. We'll take our first question from Stacy Kuh with TD Cowan. Please go ahead. Your line is open.

Hey, thanks so much for taking our questions and congrats on the progress. So the first question is to Chris, if you're there, to put you on the spot. Curious what initiatives you have in mind to broaden the YCAMP launch. And then our second question is going to be on the YCAMP RX patient hub services that you initiated in Q4. Are you able to go into more details? What kind of improvements you're seeing in real time? Just help us understand how important that access is there. And then, of course, when it comes to Salesforce, maybe talk about the additions in 26. When would you expect that to be reflected in sales? And then finally, the question we have is on consensus for 26. We do appreciate your comments in Q1. So if you're able to provide any high-level thoughts on we're seeing 30 million for 26, we appreciate your views there. Thank you so much.

Thanks, Stacey. Appreciate the questions. I'll start first, you know, with the Y Canthar X, and I'll hand it over to Chris. You know, we're starting to see some uptake and traction in that, you know, program, and have been gradually rolling it out, you know, the nondispensing pharmacy option to our new prescribers, and we're seeing some early growth. And importantly, our goal is to give this as an option for prescribers over time, and it's an important option for them, you know, particularly as volume grows, to make it, you know, as easy a process as possible. And then I'll hand this over to Chris to comment on the initiatives that he's working on and, you know, the plans around the Salesforce.

Thank you for the question. And, you know, as always, when you come into a new organization that's going through a transformation, and the team has done a tremendous job up until this point, we're looking to simplify patient acquisition, physician acquisition of the product as we achieve some of our access milestones. What's important now is to ensure that as the prescription is written, the diagnosis is made, because as you all know, this is an enormous category, and our largest competition is watchful waiting. And so as those prescriptions are written, and we're seeing that, as you heard, a series of highest days, you have a tremendous opportunity to simplify and to make the acquisition of the product easiest. As Jason mentioned, the field force has been optimized, and as we start to plug in that easier path to the prescription, we expect to see the continue of the transformation throughout this year.

And Stacy, to your last comment, you know, appreciate you inquiring about, you know, sales consensus in 2026. You know, at this point, we're not going to provide guidance yet. We're just As indicated in the release, the momentum we've seen over the last sort of five or six weeks gives us some optimism. But it's still early in the quarter. So we'll report as data is generated.

Okay. Thought we'd try anyways. Thanks so much.

I appreciate it.

Thank you. We will move next to Dennis Dink with Jefferies. Please go ahead. Your line is open.

Hi, this is Georgia bank on for Dennis sting. Thanks for taking our questions. I was wondering what kind of partnerships might you be looking into around commercial around expansion into the EU and the type of commercial partnerships that most appealing to you as you think about that. And then I have a follow up.

Sure. You know, in general, we don't comment on the nature of our business development activities. You know, what we can generally say is molluscum is a type of disease that affects children around the world. And, you know, given the clinical and, you know, safety profile of the product, you know, there continues to be interest. And we're looking for partners who can help, you know, bring this product to the patients in need and provide, you know, access to the caregivers who treat them. And so we're continuing to explore those options and what they might look like. As we indicated last year, we have a very clear path towards registration in Europe, and we're continuing to advance those activities. And as develops the warrant and can be disclosed, we will provide those updates to you and others.

Got it. That's helpful. Thank you. And then any comments around what you're seeing on the ground in terms of competitive dynamics with the competitors of Zuvni?

Sure. Like I said, you know, they're being on the market, you know, helps validate the demand and need for treatments of molluscum. And as Chris just alluded to at this point, the largest competitor by far is watchful waiting because patients, you know, didn't really have a lot of therapeutic options and their caregivers didn't have options to provide them. I think now with more voice, you know, in the market, I think that will impact the opportunity for patients to get therapies they need, for caregivers to provide it, and we're still very confident in the value proposition of WICANTH and what it brings to those clinicians as we see efficacy often as early as one or two treatments in short office visits where the caregivers are under the control of the clinicians, and the clinicians can ensure adequate, proper, and safe treatment of the patients to resolve their disease as quickly as possible.

Love it. Thank you.

Thank you. We will move next to Serge Belanger with Needham and Company. Please go ahead. Your line is open.

Great, thanks. Good morning, everyone. This is John on First Search today. Thanks for taking our questions. First, just a quick follow-up to the previous question on the Salesforce optimization. I'm just curious how much of the TAM or how many molluscum prescribers you plan to target with this size team. And I would imagine it's still predominantly focusing in pediatricians over dermatologists, but if you could provide any color on that, that'd be great. And then second, on insurance coverage, you mentioned some wins in 25 and 26. Just curious whether these wins are on the commercial side and or Medicaid. And if you could provide any additional color on where YCAMP coverage stands in both of those segments, that would be great.

Thanks for the question. to your assumption around the pediatricians, we will continue to expand into the pediatrician space. But a caveat on the dermatology, we will continue to refine our targeting of the dermatology specialty. The velocity in dermatology is significantly higher in terms of early adoption and expansion of the category. So dermatology remains a key focus. Of course, pediatric dermatology is very important and expanding reach into the pediatric community. So with our field force now optimized, one of the key things that I'll do coming in is revisit all of our targeting and segmentation to ensure we're calling on the right physician mix. As Jason mentioned, having a competitor in the market is very favorable to both manufacturers to the physicians and to the caregivers and patients. It's important these patients are not being treated currently. They are in the office. We're getting the diagnosis. We have to make sure we're getting the prescription, the innovation in their hands. So more to come on the targeting, but dermatology, the take-home point here, is absolutely a key pillar in the growth of Y-CAMP, and pediatricians are that expansion and that fuel that will continue to grow the category.

Excellent. And I think Dave will make a comment sort of on your question regarding coverage.

Good morning. This is Dave. So, yes, on coverage, I would say the coverage wins described generally in the press release. You know, it's both Medicaid and commercial enhancements during that period of time. Of course, we're always looking for opportunities to expand coverage to cover any patients who would benefit from WECN. So, you know, this is sort of generic, but we We always do look for opportunities there that make sense for the company. We've had some enhancements in both periods on both channels.

Great. Thanks for the call.

Thank you.

We will move next with Kemp Dolliver with Brookline Capital Markets. Please go ahead. Your line is open.

Great. Thank you.

With regard to the sequential decline in applicators in the quarter, was that geographically concentrated or was it a widespread decline?

Yeah, thanks, Joe. I think that, you know, in general, you know, we saw some, you know, we had some replacements of some of our field force, so we had some gaps that were being backfilled. Those reps, you know, started in Q4, and that's I think what we're seeing is part of the attribution to the growth we alluded to in February. Those reps, you know, stay in the ground running and be up to speed.

Okay, great. That's very helpful. Secondly, with VP315 in the Phase 3 program, what's the estimated cost or, you know, how much outside capital would you like to bring in to commence that program?

That's an interesting question. We've not disclosed the full development program and timing for that as of yet. We're still working to get bids, as we indicated in the release. Our activities now are on the pre-planning activities, CMC supply, to make sure we're ready to initiate that trial, provided funding, et cetera, later this year. But importantly, the goal is to run that program as efficiently as possible. We received very good favorable feedback from the FDA with regards to the design of that program in terms of the number of patients, the placebo control, the duration, and that the long-term follow-up will be sort of post-approval as a requirement. And so as we're working with the CROs to sort of design out that program and get costs, we'll share that. But as it comes from a normal development stage program, particularly oncology, we expect it will be far less than those typical programs cost.

Great. And then one last question.

There is a handful of essentially private equity-backed dermatology chains in various regions of the country. And early in the launch, there had been some attempts to penetrate them and possibly get some larger contracts in place. Have you revisited that market segment at all or plan to?

So I would say that there are certainly a lot of those chains. One of the hallmarks they have is while they do aggregate on operations and some efficiencies on the back end aspects of the business, they do allow the clinicians to make the best medical choice for treatment of their patients at a broad setting. And we've worked very hard to make YCAMP accessible to those clinicians, whether it's through buy-in bill, through a specialty pharmacy, or any other avenue that works for them. And we do see riders in many of those private equity-backed systems currently. And we continue to expand our relationships with them.

Great. Thank you.

Yep. Thank you. Our next question comes from Dev Prasad with Lucid Capital Markets. Please go ahead. Your line is open.

Hi. Thank you for taking our question. I have a couple. One on YCAMP. You mentioned February was the record month for dispensing applicator per selling day. Can you help us think about the seasonality curve for YCAMP and how should we model the quarterly cadence through 2026? And the second is on Common Wars Program. Can you walk us through the enrollment timeline for the two phase threes? When should we expect top line data and is there going to be staggered between U.S., Japan versus the global studies? Thank you.

Sure. So, in terms of February, you know, historically and sort of seasonality wise, you know, Q1, you know, is a slower, you know, quarter, you know, particularly for office treatments, et cetera, as people's deductible season gets reset. And so the investments we made last year in our marketing, our field force, our sales styles, et cetera, as well as our team, seemed to be playing out. And so we saw that growth in February. We wanted to share that with you all so you understand that we're seeing that observation. And we're early in the launch, so I think there's potential for growth, and we're very excited about it, particularly in a shortened month. February is one of the shortest number of selling days in the year. There is still some seasonality of weather and access based on, you know, especially East Coast and Midwest on snow, et cetera. But we saw access and demand to Y Camp. And, you know, we'll see what continues to trend over this year. But we're certainly excited about that. With regards to common warts, you know, I'll just make a brief comment. We started the first trial. We're very, you know, we're working very hard. And Noah and his team are working very hard to execute on enrollment for that trial. When we initiate the second trial, TOEF 3, we will sort of provide an update. But as that trial is in collaboration with our partner, Tori, we want to share in that announcement with them. And so when that happens, we will do that. Our goal would be, as those trials are enrolling, to try and get them to complete as quickly and as simultaneously as possible. And we'll evaluate what that looks like. Depending on the long-term follow-up requirements and the number of patients and the cadence of those in Japan versus the U.S., there may be a slight stagger in the registrational filing with the regulators. That will be sort of to be determined at the end. But both companies will rely on the core bit of data from both those trials for the regulatory submissions.

Great. Thank you.

Thank you.

We will move next to Ram Selvaraju with HC Wainwright. Please go ahead. Your line is open.

Thanks so much for taking our questions. I just wanted to ask about the comparison of the common warts opportunity to the molluscum opportunity. And if you could perhaps characterize the overall size of this commercial opportunity in the United States, as well as any noteworthy differences in prescriber base that you anticipate as you move common warts downfield. And secondly, I was wondering if you could perhaps comment in the context of the potential applicability of the product to the treatment of basal cell carcinoma, if specifically within that context, there may be potential for utilization of the product in patients who would otherwise be considered candidates for Mohs surgery. Thank you.

Sure. Thanks, Ron. Appreciate the question. So in terms of the market size for common warts versus molluscum, the prevalence data is estimated for molluscum of about 6 million patients in the United States. Common warts is estimated to be 20 million or more. And so just that alone is about three times the market. Based on what we've seen currently since launch, of most patients receiving about two applicators for the treatment of the molluscum. We expect common warts may also require perhaps one or two more applicators. That'll be determined based on the efficacy results we see in phase three. Common warts tend to be more persistent and difficult to clear, and that's why, based on the data we disclosed in our phase two study, we saw about 50% of the common warts were cleared At the end of four treatments and that we saw some maintenance of that clearance, you know and persistence of that You know insert a small period of follow-up. We were going to extend that period in our base three trial Terms the prescriber base. That's a really interesting question. It's something we're very excited about it's why you're seeing the investment we're making in our commercial team our commercial leadership and the investment in engaging with and with our prescribers and including our core group of dermatologists and expanding that and pediatricians, as we expect the same product presentation for Wycanth will be both for common warts and molluscum, should common warts get approved by the FDA and expand the label. That's important as that core base of prescribers see typically both types of patients. They'll have familiarity with the access to the drug, how to use the drug, the workflow in their offices, etc., And so we've worked to make that as seamless as possible. They expect that could be a more expedited launch process given the established base and the expansion of the label should come towards being added to it. With regards to our basal cell carcinoma program, that program is, our goal is to change the way those lesions are treated. Historically, it has been most surgery for predominant use. For some types of superficial lesions, there are topicals. There are a number of therapies out there, but they all have limitations in terms of patient compliance and the impact of that on efficacy, on convenience, or number of treatments or costs, or particularly surgery, surgical complications, surgical fatigue, or in patients that are simply just not eligible from their health or other reasons for surgeries. As we've done our engagement with a number of clinicians, whether it's dermatologists who do Mohs or dermatologists who don't, but still see a number of patients but are the primary diagnoser of the basal cell, we see potential uptake in both of those groups. The Mohs surgeons recognize that the complexity of any procedure they have to do, if we can dramatically reduce the size of the lesion, as we've indicated, we see greater than 80% reduction in overall lesion size, and about 50% of our patients just in our phase two study saw complete histological clearance of 100%. In addition to the abscopal data we just reported on and expanded on in this release, that we're seeing lesions that were not treated and that are distal from the treated lesions also starting to shrink during the same course of the 12 weeks that these patients are followed. So I think this really presents an opportunity for better outcomes for the Mohs surgeons, as if the lesion's smaller, the surgery will be simpler, or may not be avoided completely. So the product could be used both neoadjuvantly or as the primary therapeutic option for a wide range of patients. And we'll continue to expand our market research, and we'll share further updates on that going forward. But we're excited about this opportunity to modernize and change the way people can treat basal cell, and particularly in a way that's pharmacologic and not surgical.

Thank you. Yes.

Thank you. And at this time, there are no further questions in queue. I will now turn the meeting back to CEO, Jason Rieger.

Thank you, Operator. I'd like to thank all of you for joining us this morning, and we look forward to providing updates on our programs in 2026. Have a nice day.

This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.